1. Appendices
Formulae
The following formulae will be used in business and management external assessment. A copy of the
formulae will be provided for students in the examination.
Formulae for ratio analysis
Profitability ratios
Liquidity ratios
Shareholder (stockholder) ratios
Efficiency ratios
© International Baccalaureate Organization 2007 69

2. Formulae
or
Gearing ratio
Other formulae
Investment appraisal
Elasticity—HL only
70 © International Baccalaureate Organization 2007

3. Appendices
Discount tables—HL only
A discount table will be provided for students in the examination.
Years Discount rate
4% 6% 8% 10% 20%
1 0.9615 0.9434 0.9259 0.9091 0.8333
2 0.9246 0.8900 0.8573 0.8264 0.6944
3 0.8890 0.8396 0.7938 0.7513 0.5787
4 0.8548 0.7921 0.7350 0.6830 0.4823
5 0.8219 0.7473 0.6806 0.6209 0.4019
6 0.7903 0.7050 0.6302 0.5645 0.3349
7 0.7599 0.6651 0.5835 0.5132 0.2791
8 0.7307 0.6271 0.5403 0.4665 0.2326
9 0.7026 0.5919 0.5002 0.4241 0.1938
10 0.6756 0.5584 0.4632 0.3855 0.1615
© International Baccalaureate Organization 2007 71